'Bring the retail store to you': Try-before-you-buy services are seeing new demand

With retail stores closed, companies are noticing that customers are taking greater advantage of services that allow them to try product at home before deciding whether or not to purchase.

What happened

Try-before-you buy is having a moment, with more shoppers spending their days in front of a computer and online shopping.

Why it matters

As retail stores remain closed, companies with a try-at-home service are seeing an uptick in new customers taking advantage of it. However, with operations down across the industry, brands like Adore Me and jewelry brand Gemist are cautiously looking to scale these services without overextending their resources. Both are also being careful about how they market the service, to avoid coming off as capitalizing on a global pandemic.

Adore Me launched its curated try-at-home box called Elite in 2018, modeled in part after Stitch Fix’s model, according to Ranjan Roy, head of content at Adore Me. Customers can order four, six or eight items at a time, try them on at home, keep what they like and send back what they don’t. The goal is, over time, to learn what the customer likes and deliver boxes filled with items they end up buying.

Some companies in the space with similar models, like Stitch Fix, are still seeing growth but are still facing hurdles. In Stitch Fix’s recent second-quarter earnings, the company reported net revenue was up 22% year-over-year to $452 million. While active client count was up 17% year-over-year to 3.5 million, average order value was lower than expected. The company attributed that dip to “heightened promotional activity across retail,” according to a spokesperson.

This news brief is based on reporting published by Glossy on 2020-04-03. The original report is linked below.